Moody's affirms Indosat

Moody's Investors Service said it affirmed the corporate family ratings and senior unsecured ratings for PT Indosat Tbk at Ba1.

The outlook is stable.

The affirmation follows news that Indosat has agreed to sell 2,500 of its communications towers to PT Tower Bersama Infrastructure Tbk for $406 million, including a 5% equity stake in Tower Bersama.

While the cash inflow of about $350 million is credit positive and should help to alleviate near-term liquidity needs, Moody's said the sale itself will be leverage neutral given its operating lease adjustments-to-debt, which will negate any cash flow benefit.

While the sale agreement has been signed, closure remains conditional on approval, the agency said.

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